With logistics space at a premium around the country, a new report has indicated that the north of England could soon emerge as a heartland for the county’s supply chain by offering key property opportunities.

According to a recent study by global property advisor CBRE, a lack of quality space in the south-east – which has traditionally been the core region for the UK’s logistics industry – has resulted in a decrease in investment in the area, with companies now looking further north in their search for property.

In total, the take-up of large-scale logistics property reached 19 million square feet in 2012, representing the second highest annual total in the past five years, although a major shift has been observed with more of this property being purchased away from London and the surrounding area.

The East and West Midlands markets saw the most considerable growth in the past 12 months, as 44 per cent of space taken in large units occurred in these areas.

Yorkshire and Lancashire are now likely to emerge as key regions as they offer considerably more high quality logistics space than the saturated south. It is therefore no surprise that a number of large projects are currently being constructed in the region, including a new 31-acre site in Wigan which is being financed by development firm Barwood and insurance company Legal & General Property.

Consequently, a number of new logistics jobs could soon become available in the north, with more warehouses and other facilities set to open in the coming months.

Only six per cent of national take-up occurred in the south-east over the past six months, although the London Gateway logistics port and The Logistics Terminal at the Port of Tilbury are expected to revolutionise the nation’s supply chain by offering considerably improved efficiency in terms of handling and transporting goods as they come into the country.

With less space set to be available for the construction of large scale logistics parks in the coming years, existing facilities are likely to come under increased pressure in order to meet growing demand. Planned developments to the nation’s transport links could well prove vital in this process, which is why the government is now investing heavily in the country’s rail network.

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